REPORT: Facebook Working On Mobile Analytics

MobilePhoneGrowthChart650Facebook’s transformation into a mobile company will continue with another huge step, as VentureBeat reported that the social network is working hard toward being able to provide its own mobile analytics platform.

A “well-placed source” in the ad agency told VentureBeat that it makes sense for Facebook to cut out third-company parties and offer its own mobile analytics, saying:

Facebook does its own attribution separately. It does not have to compare itself to other channels. Advertisers have to consider the value of Facebook advertising in a vacuum and with no relation to the other channels they are spending on.

In general, the cost of Facebook advertising for applications is getting more and more expensive, and eventually users will be more and more saturated by ads. In order for Facebook to maintain the price, it needs to control the whole stack. It is basically building an entire layer on top of iOS and Android so that app developers rely on Facebook for the entire stack, from building, to launching, to marketing.

Constellation Research Analyst Ray Wang told VentureBeat:

Advertisers are trying to cut out the middlemen, and mobile advertising is the frontier for this to happen. Facebook and Google are starting to allow advertisers to go directly to them.

In the long term, advertisers don’t like going to brokers. If you look at Facebook, it has jumped its market share around 400 percent since 2012.

Readers: Should third-party analytics providers be concerned?

Image courtesy of Shutterstock.

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